Future Group bets on affordability for its fashion segment

Kishore Biyani said the retailer plans to sell 23 crore units of garments by next year March and expects it to grow to 80 crore units by 2021Writankar Mukherjee | ET Bureau | March 20, 2017, 09:44 IST

Future Group plans to open 80 new stores for its affordable fashion format FBB this fiscal to grow the store count which at present is 300, said group CEO Kishore Biyani.

Addressing a press conference here on Saturday, Biyani said the retailer plans to sell 23 crore units of garments by next year March and expects it to grow to 80 crore units by 2021. "Next fiscal, we are targeting Rs 10,000 crore sales from fashion and we expect much of it will be driven from Kolkata," he said.

Biyani said he expects prices at FBB will plunge by 3-5% every year as the retailer gains scale in operations and backend. He said around 40% of the group's revenue is driven by fashion.

Future Group launched its largest FBB store in Kolkata. The group is on an expansion spree in Kolkata and soon plans to set up a Central store over 1.5 lakh square feet in Rajarhat. Future Supply Chain Solutions has also just set up an integrated apparels and general merchandise distribution centre at Burdwan, near Kolkata. This will serve all the Big Bazaar and FBB stores located in West Bengal, Orissa, Bihar and North Eastern States. The facility is spread over 2.6 lakh square feet.

Biyani said the new distribution center at Burdwan will enable the group to reduce complexity, increase productivity and offer better services to customers in the Eastern region. "Our aim has always been to come up with better processes and technology that enables us to operate seamlessly," he said.